Of 29 ethiopia social accountability program (esap2) midterm review (mtr) final report

allocated to the project, US $ 13,538,193 equivalent to 57.8% is allocated to the “Grants to 
subprojects” component which finances grants to SAIPs. As of end of June 2014, the Bank had 
disbursed to the project US$ 13.3 million equivalent to 56.82% of the total MDTF proceeds (US$ 
23.4 million). A review of the Interim Financial Report (IFR) for the quarter ended March 31 2014 
shows that the utilization of the whole grant as of March 2014 is 30% and it is 18.7% for SAIPs 
grants component. Based on experience over the last two years, it will be imperative that future IFRs 
and QPRs provide a clear and holistic assessment of the budget execution performance both on the 
quarter under review and across all budget categories. In particular, for the period ending June 30, 
2014, this information will be useful to inform critical decisions on how to manage the remainder 
project life. 
60. Significant capacity issues remain with several of the project SAIPs and partner CSOs. There are 
partner CSOs within ESAP2, which are very small organizations with limited infrastructure and 
human resource capacity to undertake activities of SA capacity building of SACs or assisting the 
facilitation of well-prepared interface meetings. The MA recognizes this constraint is already engaged 
in providing capacity enhancement support that responds to some CSOs specific needs. This kind of 
support becomes even more needful as implementation nears holding of interface meetings. 
61. Challenges for the MA in managing 49 lead SAIPs and 61 additional partner organizations. The MA 
has undergone its own learning process over the last year in managing a program such as ESAP2, 
which was a novel enterprise also for MA staff. The MA experimented with regional coordinators 
and is currently organized along thematic streams (capacity development & training (CDT), M&E, 
grant management, finance management and support functions such as communications). Some 
activities, however, necessarily have to be undertaken sequentially that have contributed in the past to 
delays. For instance, reports submitted by SAIPs have been analyzed by finance management team, 
the M&E team, and with the CDT subsequently analyzing the narrative for budget forecasting before 
the grant management team clears a further tranche of funds. The delays in this process resulted in 
some SAIPs suspending their activities due to the absence of finances. The MA has addressed this 

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issue by releasing two tranches as SAIP reporting is analyzed by the MA for further transfer of funds 
without breaking the SAIP’s schedule of activities.
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62. SACs operating without any financial support. At present, SACs can be operating at the woreda-level 
or at the kebele-level. Since SACs function solely on a voluntary basis, it may difficult, particularly 
for those at the woredas to undertake any activities of monitoring the implementation of the Action 
Plans especially in distant areas requiring travels facilitation, given the absence of funds to cover any 
travel costs. SACs at the kebeles are however sufficiently localized to be able to cover oversight of 
Action Plans without the need for transport costs, but even these SAC members may expect as a very 
minimum refreshments. Such refreshments and others costs related to SAC meetings are currently 
borne by the SAIPs, but this would not be sustainable after the project ceases to fund the SAIPs to 
facilitate these meetings. Moreover, the disadvantage of creating more SACs at the kebele-level is 
the additional transaction costs for the MA or implementing agency that manages these in addition to 
the SACs at the woredas with already an overstretched team. The present position of MoFED is that 
SACs should work on a voluntary basis to sustain the SA process and the results achieved. Hence, it 
would be necessary to provide adequate awareness and training to SACs to enable them have a clear 
understanding on the sustainability issue. On the government side, it is hoped that the knowledge 
gained by members of SACs from a continues awareness and training programs facilitated by MA 
and SAIPs, and the ability to apply the relevant SA tools whose popularity and demand are growing 
because of their use value to communities cannot easily be reversed in all areas the program has been 
implemented.
63. Sustainability of engaging CSOs with SACs without ESAP2/MA presence. The CSOs/SAIPs 
participating in ESAP2 are acutely aware that engaging in SA-type activities requires full support 
from the government to allow them to operate at the woredas and kebeles. TheSC provides the SAIPs 
and CSOs with the necessary support to engage with local councilors, service providers and BoFED 
officials. Especially given the context of the Government’s 2009 proclamation for the registration 
and regulation of charities and societies, including the directive of 30% (for administrative costs) and
70% (for program costs), CSOs and SAIPs are wary of their ability to engage on SA-type activities 
without the current support from MoFED provided through ESAP2. The mobilization role that is 
currently played by SAIPs and partner CSOs, it is feared, may not be possible for SACs to fully 
undertake on their own and without any financial resources.
64. Considerable turnover of officials and local government staff. The investment in training and capacity 
building of service providers and local officials within ESAP2 is significant. Yet, the existence of a 
considerable turnover of such individuals may limit the effectiveness of such capacity building on 
social accountability mechanisms and their importance. The MA reports that in some cases, local 
officials/service providers pay less attention to the complaints of citizens and do not follow up the 
services that they are rendering due to such turnover of service providers. The effectiveness of the 
Action Plans and the improvements in service delivery outcomes may consequently suffer in ways 
that ESAP2 design and intervention logic did not necessarily account for. This may cause for plans to 
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The overall total amount disbursed to all 49 SAIPs by 31 December 2013 was US$ 5,793,354.28 which is roughly 44% of the total amount 
allocated for ESAP2 grant activities and therefore on schedule (accounting for the 19 SAIPs having started at a later date). 

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that ensure continuous capacity building support and implementation of orientation and fresher 
training programs for new staff. 
65. Regional variation and local contextual factors. The ESAP2 experience so far suggests high regional 
variables in mobilization. In Tigray, for instance, the recent legacy of “struggle” makes the 
relationship between citizens and their local government very close and citizens’ capacity to speak up 
is comparatively better compared to other parts of Ethiopia. In fact, citizens have been actively 
engaged in the past which explains also the high level of local organization (e.g. the youth, and 
women associations). In other regions, citizens may not be capable of speaking up even when 
sensitized on SA mechanisms for various reasons, and being further constrained with very low levels 
of community organization (e.g. only through the church, or Iddir). The project log frame does not 
suitably accommodate such regional differences and so there may be a need for ESAP2 to develop 
additional regional strategies with different milestones and trajectories for improving basic services.